NFTs in the Metaverse: A Brief Introduction
Published April 30, 2022.
An NFT (Non-Fungible Token) is a digital asset that binds ownership to a unique item, like a piece of art, real estate, music, or movie. Nowadays, NFTs are regarded as collectibles and they can be bought and traded over the internet. These tokens primarily serve as digital evidence of possession of a specific object, though they could also have other use cases.
Based on their architecture, they are built on blockchain technology - the same technology behind cryptocurrencies - which guarantees the uniqueness of each asset & the validity of the token. It’s also incredibly difficult to change or counterfeit NFTs thanks to the way they’re built - smart contracts on blockchain
don’t allow such stings to take place. Now that the basics are behind us, let’s discuss the world of NFTs in a little more detail.
What Is the Metaverse?
Metaverse is a term that goes hand in hand in any discussion involving NFTs. The term "metaverse" is a combination of the words "meta" and "universe." It's mostly used to allude to a coming future revolutionary change - dubbed “Web 3.0” - to the internet we know today. As the internet advances technologically, we can expect the growth of the technology behind virtual reality to massively increase, consequently making major innovations that can boost the overall augmented reality experience.
In essence, the use of integrated digital technologies to provide an experience heavily centered on virtual and augmented reality experiences is what the Metaverse is all about. As of May 2022, it is widely regarded as the internet's next frontier, with the IT industry and other technology giants seeing this as an opportunity for major economic and financial turnovers.
What Are NFTs Used for in the Metaverse?
NFTs in the metaverse can broaden the reach of the metaverse, which is an idea that only recently got traction. The idea is that NFTs could be used as a currency that could be used to buy and sell virtual items and get exclusive access.
At first, NFT-based keys may be the principal way to get access to the metaverse - similar to granting a user access to a website. Most experts deem that Metaverse NFTs have the potential to make a huge impact on the internet and the way it works. The possibility of employing NFTs as tokens impacting virtual property would be driven by NFT metaverse initiatives.
That being said, NFTs, like usernames and wallet addresses, are becoming the underlying technology to get assets in the metaverse. One such example is “The Sandbox”, a metaverse project that is already employing NFTs to represent digital land, virtual furniture, décor, and more. This is all possible thanks to all the smart contracts on blockchain, and the way they work.
How Can NFTs Be Used in the Metaverse?
In the Metaverse, NFTs can be used in a variety of ways. Here are a few of them:
Using NFTs in Online Communities and Events
The use of NFTs as "membership cards" to a digital public was one of the first developments in NFTs and their uses. For example, the possession of NFT profile photo collections such as CryptoPunks and Bored Ape naturally became linchpins around which holders built communities.
NFTs as Gaming Assets
NFTs have proven to be useful in the gaming community by enabling gamers to own in-game assets they have purchased. On the Harmony blockchain, projects like DeFi Kingdoms contain NFT “heroes” that gamers can purchase, trade, and rent out on an open market. These are some of the best features of DeFi.
Redefining Digital Assets and Identities
Getting your username or any identifying attributes stolen is nearly impossible in the Metaverse thanks to NFTs. Through the Ethereum Name Service (ENS), NFTs have already allowed ownership of bespoke Ethereum wallet addresses, with over 671,000 unique ".eth" addresses issued thus far.
Types of NFTs in the Metaverse:
There are several sorts of NFTs, and the list is always growing. Here are a few of them:
NFTs With a Fashion Theme
Fashion NFTs are the newest addition to the metaverse's expanding ecology. These NFTs are basically digitized accessories that digital avatars of gamers may wear to differentiate themselves from the crowd.
NFTs in Gaming
An NFT game is a combination of traditional gaming mechanisms with novel game mechanisms to offer players more impact over in-game assets such as skins, weapons, virtual territories, etc. Play-to-earn games in the metaverse have pushed NFT acceptance ahead, despite its opposition from conventional gamers. There are many in-game NFTs accessible in RPGs, card games, and even shooters.
NFTs in Real Estate
NFTs are usually used in the digital world, but that doesn't mean they can only be used to store digital data. NFTs can also be utilized to represent tangible property or real estate ownership. Fractional ownership is an example of this. By releasing tokens on the blockchain, homeowners might sell a portion of their property to a huge number of small investors. These tokens might be held by investors for the purpose of receiving a rental income.
How to Buy NFTs in the Metaverse:
You can buy NFTs from a reputable NFT marketplace like OpenSea or Rarible. You need to take the following actions in order to purchase NFTs:
- Pick the marketplace where you want to get your metaverse NFTs.
- Metaverse NFTs can also be purchased with metaverse tokens such as AXS or SAND and currencies like Ethereum and bitcoin as well.
- Pick a marketplace and then browse the metaverse's collection of NFTs to find the one that's right for you.
- Make a connection between your wallet and the marketplace. Certain NFTs need user input in a bidding process.
- Make your bid offer and wait for a confirmation.